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Invest in ZENTEC: Pioneering Next-Gen Defence Solutions◉ Abstract Zen Technologies Ltd is set for strong growth in the Indian defense market. The market is expected to rise from USD 17.40 billion in 2024 to USD 23.05 billion by 2029. The company focuses on advanced training and counter-drone solutions, and is benefiting from government initiatives of promoting indigenous production under the “Make in India” project. Moreover, Indian Govt. plans to double defense spending by FY30. A recent partnership with AVT Simulation will help Zen expand in the U.S. market. With a solid order book of ₹3,500 Crores and a revenue goal of ₹900 Crores for FY2025, Zen is investing heavily in research and development. Although its high PE ratio may suggest it’s overvalued, the company’s strong finances and growth plans indicate good potential for investors. Read full analysis here: ◉ Introduction The Indian Defence Market is expected to experience significant growth in the coming years. According to a recent report, the market size is estimated to be USD 17.40 billion in 2024 and is projected to reach USD 23.05 billion by 2029. ◉ Growth Drivers ● Government Initiatives: The Indian government is heavily promoting indigenous production through initiatives like "Make in India," which aims to reduce dependency on imports and bolster local manufacturing capabilities. ● Increased Defence Spending: India's defence budget is expected to double between FY24 and FY30, with significant allocations for new weapons procurement and R&D. For FY 2023-2024, the budget for new weapons procurement is set at USD 19.64 billion, along with USD 2.79 billion for research and development. ● Geopolitical Tensions: Ongoing border disputes with neighbouring countries such as China and Pakistan necessitate increased military spending and modernization efforts. ● Export Opportunities: Indian defence exports have surged significantly, rising from USD 200 million in FY17 to USD 2.6 billion in FY24, with expectations to reach USD 7 billion by FY30. The government's focus on enhancing export relationships with countries like Italy, Egypt, and Saudi Arabia further supports this growth. This in-depth report shines the spotlight on Zen Technologies , a mid-cap defence company that has carved a niche for itself in the Indian defence landscape. With a keen focus on pioneering training solutions and cutting-edge counter-drone technologies, Zen Technologies has emerged as a significant player in the industry. ◉ Investment Advice 💡 Buy Zen Technologies NSE:ZENTEC ● Buy Range - 2000 - 2050 ● 1st Target - 2500 - 2600 ● Potential Return - 25% - 30% ● 2nd Target - 2800 ● Potential Return - 40% ● Approx Holding Period - 12-14 months ◉ Company Overview Zen Technologies Limited, incorporated in 1996, specializes in designing, developing, and manufacturing cutting-edge combat training solutions and Counter-drone solutions for defence and security forces. The company is committed to the indigenization of technologies that benefit the Indian armed forces, state police forces, and paramilitary forces, providing them with innovative training solutions to enhance their combat readiness. With its headquarters in Hyderabad, India, Zen Technologies Limited has a significant global presence, with offices in India, UAE, and the USA. This widespread presence enables the company to effectively support its clients and partners worldwide. ◉ Market Capitalization - ₹18,858 Cr. ◉ Expansion into U.S. Market ➖ Zen Technologies recently signed a Memorandum of Understanding (MoU) with AVT Simulation to enhance its presence in the U.S. defence sector. This partnership aims to leverage AVT’s expertise in simulation technologies to introduce Zen's products to U.S. defence agencies. ◉ Revenue Projections for FY2025 ➖ Despite a strong start to the fiscal year, with revenues reaching ₹500 Crores in the first half, Zen Technologies' management has set a cautious revenue target of ₹900 Crores for FY2025. ◉ Expansion Plans ➖ Zen Technologies aims to expand into the Navy and Air Force segments through organic growth and acquisitions. ➖ The company plans to acquire Indian and overseas businesses, with deal sizes between ₹100-₹300 Crores. ◉ Investment in R&D ➖ Zen Technologies is investing heavily in research and development (R&D) to drive innovation and stay ahead of the curve. ➖ The company is currently developing new products that are reportedly two generations more advanced than those showcased in 2021. This focus on R&D underscores Zen Technologies' dedication to delivering cutting-edge solutions that meet the evolving needs of its customers. ◉ Order Book Status ➖ A substantial order pipeline of ₹3,500 Crores is in place, with ₹1,200 Crores expected to be executed in the next financial year. ➖ Order inflow is forecasted to pick up significantly towards the end of Q3 and into Q4 of FY2025, positioning for continued growth and success. ◉ Margin Expectations ➖ Management targets 35% EBITDA margin and 25% PAT margin, despite current gross margin pressures due to product and geographical mix changes. ◉ Revenue & Profit Analysis ● Year-on-year ➖ The company's FY24 performance was marked by impressive growth, with sales reaching ₹440 crore, representing a 100% year-over-year increase. ➖ EBITDA also surged significantly, rising to ₹181 crore from ₹73 crore in FY23. ➖ Notably, the company achieved a substantial EBITDA margin of 41%, highlighting its operational efficiency and profitability. ● Quarter-on-quarter ➖ The company's recent quarter sales stood at ₹242 crore, a decline from the previous quarter, but a substantial increase from ₹66 crore in the same quarter last year. ➖ EBITDA dropped to ₹80 crore from ₹111 crore in the previous quarter. ◉ Valuation ● P/E Ratio ➖ The stock's current price-to-earnings (PE) ratio of 93.1 appears overstretched compared to its industry average PE of 51.6. ➖ Furthermore, relative to its 1-year median PE of 76.5, the stock seems overvalued, suggesting potential downside risks. ● PEG Ratio ➖ When we look at the PEG ratio of just 1.64, the stocks looks fairly valued relative to its anticipated earnings growth. ◉ Cash Flow Analysis ➖ The company's operating cash flow experienced a substantial decline in FY24, plummeting to ₹13 crore from a robust ₹116 crore in FY23. ◉ Debt Analysis ➖ With a debt-to-equity ratio of just 0.04, the company enjoys a virtually debt-free status, underscoring its robust financial health and providing a solid foundation for future expansion. ◉ Top Shareholders ➖ In the September quarter, promoters reduced their stake to 51.26% from 55.07% in the previous quarter. ➖ Foreign Institutional Investors (FIIs) have significantly raised their holdings to 5.72%. ➖ Domestic Institutional Investors (DIIs) also increased their stakes, now at 8.05%, up from 3.37% in June. ➖ Conversely, retail investors sold shares, decreasing their holdings to 34.5% from 37.94% in June 2024. ◉ Mutual Fund Exposure ➖ Institutional holdings in Zen Technologies skyrocketed by 550% to 42 lakh shares in October 2024, with 23 funds taking a significant stake, up from 6.4 lakh shares in July. ◉ Bulk Deal Alert ➖ On December 3, 2024, Motilal Oswal Mutual Fund acquired over 11 lakh shares of Zen Technologies through a bulk deal. ◉ Technical Standings ➖ The monthly chart clearly illustrates a strong upward trend in the stock, marked by a series of higher highs and higher lows. ➖ The daily chart also presents a bullish scenario, with the formation of an Ascending Triangle pattern. ➖ A fresh breakout from this pattern is likely to propel the stock to new highs. ◉ Conclusion Following a comprehensive analysis of fundamental and technical indicators, we firmly believe that Zen Technologies is well-positioned for robust growth, underpinned by its innovative solutions and strong research and development capabilities. The company's strategic expansion plans into key markets, particularly the United States, are expected to unlock vast opportunities, driving significant growth in revenue and profitability. This, in turn, is likely to have a positive impact on the company's top-line and bottom-line performance, as well as its share price.
NSE:ZENTECLong
by GoodluckCapital
IT Bees looks good for a positional medium-term play.#tradeideas #ITbees. Looks good for a positional medium-term play. -Nifty IT along with BN is supporting Nifty. -IT sector shows resilience in this market fall. - Positivity in US market (NASDAQ) - Easy to get in and out. Good liquidity. What could go wrong? - Overall bearish sentiments in our market. If NIFTY were to fall further, IT would follow suit. - Dependent on NASDAQ move, so pay close attention to US markets. Overall this is a low-risk setup. Risk is only 6.5-7%. Build positions sensibly. Risk management is key. Do not put all your money at once. And respect the SL. Building this position early because if we were to get a reversal soon then the rewards will be good. If the reversal is not sustained then our risk is still less. This is just a view and chart shared for educational purposes only.
NSE:ITBEESLong
by sagartharayil
EXXARO TILES LTD. LOOKS GOOD FOR SHORT TERM AS WELL AS LONG TERMHello, Everyone I hope you all will be doing well in your life and your investing as well. Here I have brought a stock that is mostly ready to give Breakout. Exxaro Tiles Ltd is the name of the stock. CMP is 96. Its IPO price was 120. And it's below that price. Once it will cross 100 to 120. Target as per fibbo 130, 150, 170 It may touch 225. 80 is a strong support. Mostly it will not break that. About Incorporated in 2008, Exxaro Tiles Ltd is a manufacturer and trader of refractory ceramic products Key Points Business Overview: ETL is engaged in the manufacturing and marketing of vitrified tiles, with over 1,000 designs across 6 different sizes and a presence in 25 states and 6 countries. Product Categories: a) Double Charge Vitrified Tiles b) Glazed Vitrified Tiles c) Full Body Vitrified Tiles d) Wall Tiles e) Parking Tiles Product Profile: a) 3D effect in Double Charge b) FGVT Tiles c) More than 95% Glossy Tiles d) Full-Color Body Vitrified Tiles e) 4 Layer Nano+ Micro Polished Tech f) High Gloss Tiles in GVT g) Big GVT slab Product Application: Airports, Hotels, Interior Design & Furnishings, Retail Malls, Homes, Restaurants, Museums, Shops, Offices, etc. Production Facilities: Company has ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified manufacturing facilities located at Padra and Talod. It has a 14.6 million Sq. Mt. Production Capacity Per annum for manufacturing glazed vitrified tiles. In FY23, company did a production of ~9.45 Msm, Vol. ~10.85 Msm, Capacity utilisation ~67.98% Clientele: BAPS, Purvankara, Lodha, Rajhans, Shapoorji Pallonji, Amul, Welspun, Intas, Samsung, SBI, etc. Network: Company has a network of over 800 dealers and 2000+ touch points where its products are sold under “Exxaro” brand Geographical Revenue Split - FY23: Exports ~1%, Domestic ~99% Key Developments - H1 FY24: a) Set up a manufacturing facility at the existing plant at Talod with capacity of 1.4 million sq. mtrs p.a b) Large format GVT tiles admeasuring 9mm/20mm with thickness in various sizes of 800x2400, 800x3000, 800x3200, 1200x1800 & 1200x2400. c) Capex for setting up the big slab production line was funded through internal accruals with a revenue potential of Rs. 250 crores at full capacity d) Purchased “SACMI CONTINUA” Technology from Italy, admeasuring 1600mm x 3200 mm to manufacture large glazed vitrified tiles/slabs Brand Ambassador The company signed Ajay Devgn as their brand ambassador. The company has budgeted ~1% of revenues for advertising and sales promotions. New Launches In FY23, the company started production of the GVT Big Size Slab in a new manufacturing line at our Talod, Gujarat plant. This expansion required a Rs. 300 million capital investment funded internally. The GVT Big Size Slab, a premium product, replaces traditional materials like marble, granite, and quartz, boasting the latest technology. This is just to boost my confidence. No Suggestions for buying. Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial advisor before making any decisions.
NSE:EXXAROLong
by Alleyshah
Indiamart Again - Low Risk SetupCMP 2344 on 01.12.24 1. In recent sessions, the stock has formed a cup & handle pattern. But could not give a breakout of the formation. 2. At present, tested the lower level of HANDLE and formed a Double Bottom Pattern & gave a bounce back too. 3. If the momentum continues, may go into a bullish phase. 4. MACD is showing a reversal too. 5. The risk-reward ratio is quite good at the moment. NOTE - The above illustration is my own view, shared here only for learning and observation purpose. it is not a bit of trading advice in any form. All the best.
NSE:INDIAMARTLong
by anandlive
4
BANK OF INDIA - ' W ' PATTERN BREAKOUT IN MONTHLY TIMEFRAME Can Enter at CMP or 101 Target - 180, 270, 420 Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKINDIALong
by Jagadheesh_JP
6-Key Factors to Consider Before Buying a New Stock1. Understand the Business Company Overview: Learn about the company’s business model and the industry it operates in. Market Position: Assess if the company is a leader, challenger, or a new entrant in its sector. Management Quality: Research the track record and credibility of the company’s leadership team. 2. Analyze Financial Health Revenue and Profit Trends: Check for consistent growth in revenue and net profit. Debt Levels: A lower debt-to-equity ratio is generally safer. Profit Margins: Compare the company’s margins with its industry peers. Valuation Metrics: P/E Ratio: Helps gauge if the stock is overvalued or undervalued. P/B Ratio: Compares market value to the company’s book value. Dividend Yield: Look at the consistency of dividend payouts, if applicable. 3. Assess Market and Industry Trends Sector Performance: Identify whether the industry is in a growth phase. Economic Impact: Factors like interest rates, inflation, or regulations can influence the stock. Competition: Understand the competitive landscape and any potential threats. 4. Use Technical Analysis For traders relying on technical indicators, consider the following: Trend Analysis: Identify whether the stock is in an uptrend, downtrend, or sideways market. Support and Resistance: Check critical price levels for potential entries. Volume: Higher volumes indicate stronger market interest. 5. Evaluate Risk s Volatility: Is the stock prone to significant price fluctuations? Regulatory Risks: Ensure there are no ongoing legal or compliance issues. Sector Risks: Some sectors, like technology, can be highly volatile compared to utilities. 6. Align with Your Investment Goals Time Horizon: Decide if this is a long-term investment or a short-term trade. Risk Appetite: Invest based on your risk tolerance and financial capacity. Diversification: Ensure the stock adds value to your portfolio without overexposure. Final Thoughts Investing in stocks requires diligent research and careful planning. Always cross-check your analysis with reliable data sources and consult a financial advisor if necessary. Avoid emotional decisions and focus on long-term wealth creation.
NSE:RELIANCE
by tony_fx_sm
2
Birlasoft - Positional setupCMP 599 on 12.10.24 A Pole and Flag pattern-like formation is in progress on the chart. But a trade setup should be backed by other parameters too. The range of 550-580 has been acting as a good support zone for a long time. This time, it reversed from the zone again—a good time for a buy setup with a favorable risk-reward ratio. Immediate targets seem 670, 710, and 740. The setup fails if the price sustains below 550-540 levels. Position size should be following risk management. This is only for learning and sharing purposes, not trading advice in any form. All the best.
NSE:BSOFTLong
by anandlive
Havells - Low Risk IdeaCMP 1614 on 05.11.24 The chart is self-explanatory. Since 2021, the blue-colored parallel channel has been turned into a support ( if works like ). If the price bounces back from the support, may go into a bullish phase. targets may be 1700/1800/1900. MACD histogram also shows some reversal. The setup goes weak if sustains below 1550. Keep your position size according to the stop loss and your trading strategy. All this illustration is my own view, only for learning and sharing purposes, not a trading recommendation in any form. All the best.
NSE:HAVELLSLong
by anandlive
LTIM - Getting ReadyThe chart is self explanatory. Since Nov. 21, the price has been forming a Triangular pattern. Already given a breakout of that. Since Jan. 24, A Cup & Handle pattern is formed and a breakout is seen on the charts. At present time, we can observe the retest of the both breakouts. If the price gives a bounce back from present range of 6000-5800 and sustains above, may see a bullish run upto 7000/7500 and even more. If sustains below 5600, the setup goes weak. One should mind the position size according the risk-management. The above illustration is my own view, only for learning and sharing purposes, not a trading advice in any form. All the best.
NSE:LTIMLong
by anandlive
4
Moil - Low Risk Setup CMP 334.60 on 02.11.24 The price has been corrected by around 40% from the higher levels. All important levels are marked on the charts. If crosses the area of 340-370 and sustains above, may go into a bullish phase again. targets may be 380/480 and even more. If sustains below 310 and sustains below, the setup goes weak. At present point, the risk-reward ratio is quite good. This is my view only for learning and sharing purposes, not trading advice in any form. All the best for your trading journeys.
NSE:MOILLong
by anandlive
A Healthcare Face-Off: Apollo vs. Narayana◉ Abstract India's hospital industry is growing rapidly, valued at ₹8.35 lakh cr. ($98.98 B) in 2023, with a projected CAGR of 5.8-8.0% from 2024 to 2032. Apollo Hospitals and Narayana Hrudayalaya are two leading players, with Apollo being the largest private hospital network and Narayana Hrudayalaya known for cost-effective cardiac care. Narayana Hrudayalaya appears undervalued with a P/E ratio of 33.5 and more profitable (ROCE: 27%), making it an attractive investment option. Apollo Hospitals seems overvalued with a P/E ratio of 83.4 but remains viable for strategic entry points. Both companies are poised for growth driven by increasing healthcare demands and infrastructure expansion. Read full analysis here........ ◉ Introduction The hospital industry in India is experiencing significant growth, with the market valued at approximately ₹8.35 lakh cr. ($98.98 B) in 2023. Projections indicate a robust compound annual growth rate (CAGR) of 5.8% to 8.0% from 2024 to 2032, potentially reaching between 13.87 lakh cr. and 16.33 lakh cr. ($164.4 B - $193.6 B) by 2032, depending on various market analyses. ◉ Growth Drivers of the Indian Hospital Industry ● Increased Healthcare Expenditure: ➖ Rising public and private spending on healthcare, with government health expenditure aiming for 2.5% of GDP by 2025. ➖ Expanding middle class with higher disposable incomes and greater access to health insurance. ● Technological Advancements: ➖ Adoption of healthcare technologies such as telemedicine and robotic automation, improving service delivery. ➖ National Digital Health Blueprint promoting innovations in e-health. ● Policy Support and Foreign Investment: ➖ Favourable government policies allowing 100% FDI in healthcare, attracting significant investments. ➖ Public-private partnerships enhancing healthcare access, especially in underserved areas. ● Demand for Specialized Services: ➖ Increasing incidence of lifestyle diseases driving demand for specialized healthcare. ➖ Growth in medical tourism as India becomes a preferred destination for cost-effective treatments. These factors are collectively propelling the growth of the hospital industry in India, positioning it for a promising future. ◉ Key players in the Indian hospital sector 1. Apollo Hospitals leads the sector with a market capitalization of approximately ₹98,646 Cr, establishing itself as the largest private hospital network in India. 2. Max Healthcare closely follows, boasting a market capitalization of around ₹97,820 Cr. 3. Fortis Healthcare is another key participant in the market, with a market capitalization of ₹48,249 Cr. 4. Global Health also ranks among the premier healthcare institutions, holding a market capitalization of ₹28,786 Cr. 5. Narayana Hrudayalaya is recognized for its cost-effective cardiac care services and maintains a notable market share with a market capitalization of ₹26,086 Cr. In this report, we will conduct an in-depth analysis and comparison between two of India's leading healthcare providers, Apollo Hospitals and Narayana Hrudayalaya. This comprehensive evaluation will assess their technical and fundamental aspects, ◉ Company Overviews ● Apollo Hospital NSE:APOLLOHOSP Apollo Hospitals was founded in 1983 by Dr. Prathap C Reddy, a visionary in the evolution of modern healthcare in India. As the first corporate hospital in the country, Apollo Hospitals is celebrated for leading the charge in the private healthcare transformation. Today, Apollo Hospitals stands as Asia's leading integrated healthcare services provider, boasting a strong footprint throughout the healthcare landscape. This includes a diverse range of services such as hospitals, pharmacies, primary care and diagnostic clinics, as well as various retail health models. ● Narayana Hrudalaya NSE:NH Narayana Hrudayalaya Limited is involved in providing medical and healthcare services both in India and abroad. It functions through two main divisions: Medical and Healthcare Related Services, and Others. The organization is responsible for acquiring, owning, and managing a variety of healthcare facilities, including hospitals, clinics, health centres, diagnostic centres, and nursing homes, among other related operations. Its range of services encompasses cardiology, cardiac surgery, nephrology, urology, neurology, neurosurgery, endocrinology, orthopaedics, internal medicine, obstetrics, gynaecology, pediatrics, neonatology, gastroenterology, and oncology. Additionally, the company is active in the health insurance sector. Established in 2000, its headquarters is located in Bengaluru, India. ◉ Technical Analysis ● Apollo Hospitals ➖ The stock faced a significant obstacle near the 5,800 level, resulted in a steep drop. ➖ It later found support around 3,500 and rebounded. ➖ Following an extended period of consolidation, the price developed a Rounding Bottom pattern. ➖ A breakout ensued, leading to a price increase, but it encountered resistance close to 6,800, which triggered a pullback to the breakout point. ➖ Following a successful retest, the price surged past the previous high, reaching a new peak at 7,545. ➖ However, due to prevailing negative market sentiments, the price has since retraced and is currently trading just above its immediate support zone. ● Narayana Hrudalaya ➖ The stock price is overall in an uptrend. ➖ After reaching an all-time high close to the 1,445 level, the price experienced a decline and has since entered a consolidation phase. ➖ A Symmetrical Triangle pattern has formed on the chart. ➖ We expect an upward breakout from this pattern, which could lead to a significant price rally. ◉ Relative Strength ➖ The chart reveals that both Apollo and Narayana Hrudayalaya have underperformed the Nifty Healthcare index. Although Apollo has given a descent 31% return, Narayana lagged significantly, yielding a modest 17% return. In contrast, the Nifty Healthcare index delivered an impressive 41% return. ◉ Service Wise Revenue Breakdown ● Apollo Hospitals The company operates through three primary segments, each contributing significantly to its revenue. ➖ Healthcare services account for approximately 52% of total revenue, forming the largest share. ➖ The retail pharmacy business generates nearly 41% of total sales, while the retail health and diagnostics segment contributes the remaining 7%. ● Narayana Hrudalaya ➖ The company operates exclusively in the healthcare services sector, deriving all its revenue from this single segment. ◉ Revenue & Profit Analysis ● Apollo Hospitals Year-over-Year ➖ The company's fiscal year 2024 performance was marked by strong growth, with revenue reaching ₹19,059 crore, a 15% increase from ₹16,612 crore in FY23. ➖ EBITDA surged to ₹2,394 crore, up from ₹2,065 crore in FY23, while the EBITDA margin improved to 13% from 12%. Quarter-over-Quarter ➖ In the latest quarter ending September 2024, the company achieved its highest-ever sales of ₹5,589 crore, significantly up from ₹5,086 crore in June 2024. This quarter-on-quarter growth has been consistent since March 2022. ➖ EBITDA for the quarter was an impressive ₹816 crore, a 21% increase from ₹675 crore in June 2024. ➖ Diluted EPS (LTM) rose substantially to ₹83.31 from ₹72.13 in June 2024. ● Narayana Hrudalaya Year-over-Year ➖ In FY24, our company achieved remarkable sales growth, surging 11% to ₹5,018 crore from ₹4,525 crore in FY23. ➖ EBITDA soared to ₹1,173 crore, up from ₹987 crore in the same period, with an impressive EBITDA margin of 23%. Quarter-over-Quarter ➖ Our quarterly sales reached an all-time high of ₹1,400 crore in September, representing a 4% increase from ₹1,341 crore in June. ➖ Although EBITDA growth was modest, it still improved to ₹308 crore in September from ₹304 crore in June 2024. ➖ However, Diluted EPS experienced a decline, dropping to ₹38.85 from ₹39.72. ◉ Valuation ● P/E Ratio ➖ Apollo Hospitals' current P/E ratio stands at 83.4, down from its 1-year median of 107.7. However, this remains significantly above the industry average of 56.9, indicating overvaluation. ➖ In contrast, Narayana Hrudalaya's P/E ratio of 33.5 is slightly above its 1-year median of 32.8 and substantially below the industry average, suggesting undervaluation. ● P/B Ratio ➖ Apollo's P/B ratio of 13.15 indicates considerable overvaluation compared to the industry average of 7.18. ➖ Narayana Hrudalaya's P/B ratio of 8.14 also suggests overvaluation, albeit to a lesser extent. ● PEG Ratio ➖ Narayana's PEG ratio of 0.49 positions it as an attractive investment opportunity, especially when compared to Apollo's considerably higher PEG of 2.43. ◉ Profitability Analysis ➖ Apollo Hospitals ROCE - 15% in FY24 ➖ Narayana Hrudalaya ROCE - 27% in FY24 The significant difference in ROCE between the two healthcare giants underscores Narayana Hrudalaya's superior profitability. Narayana's impressive ROCE of 27% demonstrates its ability to efficiently utilize its total capital, comprising both equity and debt, to generate substantially higher returns. ◉ Cash Flow Analysis ➖ Apollo Hospitals has demonstrated impressive growth in its operating cash flow, surging 39% to ₹1,920 crore in FY24 from ₹1,377 crore in FY23. This robust growth underscores the company's efficiency in converting profits into cash, highlighting its strong financial health and liquidity position. ➖ In contrast, Narayana Hrudalaya has shown sluggishness in turning profits into cash, with its operating cash flow declining 2% to ₹1,067 crore in FY24 from ₹1,085 crore in FY23. ◉ Debt Analysis ➖ Apollo Hospitals' debt stands at ₹7,371 crore, resulting in a debt-to-equity ratio of 0.98, which, although relatively high, is not alarming. However, the company's low interest coverage ratio of 4.69 raises concerns about its ability to service its debt. This vulnerability may complicate repayment of borrowed loans, potentially straining Apollo's financial stability. ➖ In contrast, Narayana Hrudalaya's debt of ₹1,703 crore and debt-to-equity ratio of 0.53 indicate robust financial health. Furthermore, its impressive interest coverage ratio of 8.34 suggests the company is well-positioned to manage its debt obligations, ensuring greater financial flexibility and stability. ◉ Shareholding Pattern ● Apollo Hospitals ➖ In the September quarter, Foreign Institutional Investors (FIIs) increased their stake in Apollo Hospitals to 45.37%, up from the previous quarter. ➖ Conversely, Domestic Institutional Investors (DIIs) reduced their holdings to 19.94%, a significant decrease from 24.77% in the last quarter. ● Narayana Hrudalaya ➖ In contrast, Narayana Hrudalaya witnessed a decline in institutional investor holdings. FIIs reduced their stake to 9.69%, down from 10% in the previous quarter. ➖ Domestic Institutional Investors (DIIs) also decreased their holdings to 7.9%, down from 8.22% in the June quarter. ◉ Conclusion Following a comprehensive analysis of both technical and fundamental aspects, we conclude that Narayana Hrudalaya appears to be favorably positioned from a valuation perspective, presenting an attractive investment opportunity. However, this does not diminish Apollo Hospitals' potential. Although the stock currently appears overvalued, investors can consider accumulating shares during dips, making it a viable option for those seeking strategic entry points. The healthcare sector's promising growth trajectory, fueled by rising healthcare demands and infrastructure expansion, positions both companies for potentially excellent returns in the near future.
NSE:APOLLOHOSPLong
by GoodluckCapital
2
NIFTY... KEEP INVESTING...Guys... I am sharing my view on the Elliot waves in Nifty. The bullish pattern is intact. We are currently in the 3rd primary wave. Of the five intermediate waves in the primary wave 3, nifty is right now in wave (4) correction. A quick and rapid wave (5) is likely to start at the end of wave 4. Though Nifty is at 200 EMA right now, I feel the strong support zone is around 22700 levels. I won't be surprised if Nifty can fall around 800 points from here. Keep investing in parts and add more when Nifty goes below 23000. The market is always right..! Trade with appropriate stop-loss.
NSE:NIFTYLong
by Stock-Holmes
Nifty.23300 on the cards??Nifty closed right at an important support. Now the likelihood of Nifty pulling back to 200 DMA( around 23550 range) and 23300 level is high. 23300 region have a trendline support as well, if we did not get any reversal from there and the trendline is broken then possibility of Nifty going to 21800 will increase. As of now, no point in attempting to find reversal. No point in assuming levels. We could very well get a reversal from current level or a pull back to 200 DMA. No telling right now. Wait and watch market. Take it day by day, bits by bits Do not assume it will hit 21800-21k 20k 18K. -Stocks trading below 200 DMA is roughly 50 % -Stocks trading below 50 DMA is close to 80% -Most of the stocks exhibiting LH-LL -Majority sectors forming LH-LL. We need a solid confirmation before attempting any reversal trades. This is just my view, please do not make a decision without consulting your financial advisor.
NSE:NIFTY
by sagartharayil
3
Motison Aiming for a base breakout!#Tradeideas #motison- After the split the stock is setting up and trying to break out of base. Watch the PA closely. Safe traders wait for a close above 34. -SL is deep around 15%. So position size accordingly. - Not a time for big bets yet. - Do your due diligence and protect your capital, please do not be complacent. Trade Safe! Market Cap---₹ 3,244 Cr. Current Price--₹ 33.0 Stock P/E---85.6 ROCE---16.6 % ROE---13.9 % Face Value---₹ 1.00
NSE:MOTISONSLong
by sagartharayil